Consolidation is becoming more widespread across healthcare, with several large management groups and physician organizations picking up smaller practices nationwide.
“As the U.S. healthcare landscape continues to evolve, hospital consolidation is emerging as a dominant trend and one with profound implications for spine care delivery. From the perspective of ASCs, this consolidation wave represents both a significant challenge and a unique strategic opportunity,” Ali Ghalayini, administrator at Advanced Spine Center of Wisconsin in Neenah, told Becker’s. “With hospitals merging into large, integrated networks, ASCs must adapt to preserve their share of the spine care market and continue offering high-quality, cost-effective alternatives.”
Here are four major organizations that have started acquiring spine practices rapidly over the last several years:
Compass Surgical Partners
Compass Surgical Partners has struck several partnerships to open orthopedic and spine-focused ASCs in the last few years. In March, Compass joined with the Orthopaedic Institute of North Texas to operate a new ASC in Frisco, Texas, and in February, it partnered with NYC Joint & Spine Center in Englewood, N.J., to open an ASC.
In 2024, Baptist Health and Compass Surgical Partners joined to open multiple Horizon Surgery Center facilities in northeast Florida, both by modernizing outpatient spaces owned by the health system and executing targeted acquisitions of existing ASCs.
OrthoMidwest
In 2024, Peoria, Ill.-based OSF Health signed a clinical co-management agreement with OrthoMidwest. OrthoMidwest was formed in 2023 when Chicago-based Midwest Orthopaedics at Rush and Rockford-based OrthoIllinois aggregated as a group without private equity backing.
The group now has several orthopedic, spine and physical therapy practices across Illinois and Indiana.
UnitedHealthcare
Between 2019 and 2023, UnitedHealthcare and its subsidiary Optum, the largest employer of physicians nationwide, purchased 11% of all acquired physician practices. This included the acquisitions of Crystal Run Healthcare in Middletown, N.Y., Kelsey-Seybold in Houston and Atrius Health in Easton, Mass., three major systems that all offer spine and management.
In addition, Deerfield, Ill.-based SCA Health, Optum’s ASC arm, acquired OrthoAlliance in December, which has partnered with more than 200 physicians across all orthopedics and sports medicine specialties.
Louisiana Orthopedic Specialists
Baton Rouge (La.) Orthopaedic Clinic and Lafayette-based Louisiana Orthopedic Specialists merged in the third quarter of 2024. Both practices will operate independently under their existing brands but share combined resources and expertise.
LOS specializes in spine and orthopedic care, with practices, ASCs and physical therapy locations across the state.
LOS also plans to open an orthopedic and spine ASC in Lafayette, La. LOS Surgery Center will house eight operating rooms and feature orthopedic robots. Surgeons at the facility will perform total joint replacements, minimally invasive spine surgery and interventional treatments.
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